Fed Cut Is Bad News For Savers

The Fed's cut is good news for borrowers but bad for savers.

Lenders cut the prime rate, the benchmark for many home-equity loans. Credit card rates should fall over the next few months. Those with adjustable-rate mortgages resetting soon will also benefit. Yet amid massive write-downs, banks have been slower to pass along rate cuts and have raised fees. And for savers, returns from conservative investments will continue to fall.

"Savers are taking it on the chin," Bankrate.com's Greg McBride says.

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Comments

[javaman]

Are they kidding? credit card rates to fall? These are the companies being hit by this credit crunch. They are never going to lower rates, in fact they are probably going to raise them.

[Blurp]

"C'mon America! Don't worry about saving... it's futile anyway. Spend, spend, spend! Spend little Bobby and Suzy's college fund America!"

[Rule Of Law]

What savers?

[ajax2]

Bad News For Savers Or Anyone With Fixed U.S. Dollar Income. You have been thrown overboard.

[zizyphus]

It looks the FED won't stop until everyone is in debt, has lost their home and the FED is holding all the mortgages. Isn't that the endgame in Monopoly?

[mrcontinental]

Yep. Monopoly is an american classic yet many people don't seem to remember it's end result when played strictly by the rules. There is only one true winner, the rest are losers and this will be no different.

[ExRepublican]

Just a tad off topic - but - if Silver can tank back down to 15 (10-15 area, even better) well, there's your chance! :-)

[almoguy]

My daughter won't play monopoly with me because she says I'm a poor winner (diabolical laugh sets her off every time.) She keeps going for Park Place and I always buy Baltic and Mediterranean (slum lords rule) We play with freeparking as a chance saviour...gee just like the Fed.

[Blurp]

No, they won't stop until we're all fucking sharecroppers.

[mrcontinental]

This is a oldie but goodie article from 2000, enjoy:

http://the-moneychanger.com/articles_files/mmm_files/economy/chapman.phtml